Adnoc L&S raises USD 769 mn in 163x oversubscribed IPO:Adnoc Logistics & Services sold a total of 1.41 bn shares — or a 19% stake — at AED 2.01 per share in its IPO, raising some USD 769 mn following a bookbuilding process that saw shares 163x oversubscribed, the company said in a statement (pdf). The offering values the company at USD 4.05 bn (AED 14.9 bn). The company will debut its shares on the ADX on 1 June under the ticker ADNOCLS.

Most in-demand IPO globally this year: The company drew orders worth USD 125 bn (AED 460 bn) from institutional investors in a number of countries, including from the UAE, and from retail investors including Adnoc employees and its retirees. The company also saw the highest-ever oversubscription rate for an IPO in the UAE, Adnoc Group CFO Adnoc Khaled Al Zaabi said. The retail tranche alone drew in some USD 31 bn in demand, which indicates a 269x oversubscription level, the statement added.

Refresher: The number of shares being sold was upped to 1.41 bn shares (a 19% stake) from 1.11 bn shares (a 15% stake) due to strong investor demand across all tranches.

Post-IPO ownership structure: Once the company’s shares begin trading on the ADX, Adnoc will continue to own an 81% majority stake in Adnoc L&S. The 19% stake sold in the IPO will be split between shares traded on the ADX (76.6% of the IPO offering) and cornerstone investors — which include Al Seer Marine Supplies & Equipment, National Marine Dredging Company, Alpha Oryx, and Abu Dhabi Pension Fund (23.4% of the IPO offering).

This IPO is the sixth company Adnoc has listed within five years, Al Zaabi notes. The company’s landmark IPOs of Adnoc Distribution, Adnoc Drilling, Fertiglobe, Borouge, and Adnoc Gas have together raised more than USD 8 bn, state agency Emirates News Agency (WAM) writes.

Advisors: Moelis & Co has signed on as the independent financial advisor for the offering. Citigroup, First Abu Dhabi Bank, HSBC Bank Middle East, and JP Morgan Securities are acting as global coordinators and bookrunners, while Abu Dhabi Commercial Bank, Arqaam Capital, Crédit Agricole, EFG-Hermes UAE, International Securities and Société Générale will also offer their services as bookrunners. Abu Dhabi Islamic Bank, and Al Maryah Community Bank have been appointed as receiving banks, while First Abu Dhabi Bank was chosen as lead receiving bank.

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